investors meet - presentation on q3 results [company update]
TRANSCRIPT
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Tube Investment of India Limited
Investor Presentation
March 2016Stock Codes: BSE: 504973 NSE: TUBEINVEST Bloomberg: TI IN / TI IB Reuters: TUBE.NS / TUBE.BO
CIN: L35921TN1949PLC002905
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1.About Murugappa Group
2.Tube Investments of India Limited
3.Business Divisional Performance
4.Company Financials
This presentation contains forward-looking statements which may be identified by their use of words like plans, expects, will, anticipates,
believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the
future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financialresults, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot
guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ
materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise
any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.
-------------------------------------------------------------------------------Disclaimer------------------------------------------------------------------------------
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Contents
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INR 269 Billion Conglomerate
One of the largest family promoted, professionally managed, diversified business
groups
Murugappa Group
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Philosophy The fundamental principle of economic activity is that no man you transact
with will lose; then you shall not.
- Arthashastra
Murugappa Group-Spirit and Philosophy
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3/9/2016Copyright TI | All Rights Reserved
www.tiindia.com
Murugappa Group Today
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Gross Sales Share
EBITDA Share
TII (Consolidated) represent 37% of Gross Sales and 42% of EBITDA of Murugappa
Group
Murugappa Group FY 2014-15
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Tube Investments of India Limited
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1949 1955 1960 1965 1978 1985 2001 2010 2012 2014
1949 Set up TI Cycles
(BSA & Hercules Brands)
1955
Incorporated Tube Products
1985 Indigenously
manufactured 100 cc bike chain
2010
Acquired Sedis, France
1960 Incorporated TIDC
1965 Set up TI Metal Forming
2012 Acquired Shanthi Gears
1978 Promoted
Financial Services
2001 Promoted General
Insurance Co.
2014
Large Diameter Tube Plant
2014- Promoted
TI Tsubamex,
TII- A Conglomerate
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Manufacturing
Manufacturers of
Tubes, Strips, & Tubular Components
Bicycles & Fitness Products,
Chains for Automobile sector & Industrial
applications,
Doorframe & Channels
Industrial Gears
Designing & Manufacturing of Dies
23 Manufacturing Locations
Suppliers to all major automotive OEMs in
India
Focus on Quality & Operational excellence
Financial Services
Financing
534 branches across 25 states /UnionTerritories
90% presence across Tier II, Tier III & Tier IV
towns
General Insurance
105 branches and over 9000 agents across
the country.
Key Financials (Consolidated)
Cr. 2014-15 2013-14 Growth
Revenue 9,698 8,834 10%
EBITDA 1,234 1,044 18%
PBIT 1,112 914 22%
Net Profit 424 311 36%
Cr. YTDDec 15 *
YTDDec 14
Growth
Revenue 6,280 7,330 -14%
EBITDA 731 910 -20%
PBIT 637 799 -20%
Net Profit 313 277 13%
*Revenue, EBITDA and PBIT of YTD Dec 15
includes CIFCL financials upto Aug 15 only as
CIFCL ceased to be a subsidiary w.e.f.
2nd September, 2015. However, Net Profit
includes entire 9 months Net Profit of CIFCL.
Corporate Overview
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One of the Largest
bicycle producers in
India
Preferred supplier for
metal formed door frames
Major player in
automotive and
agricultural chains
Largest Supplier of
precision tubes (CDW)
One of the Largest bicycle
producers in India
Major player in
automotive and industrial
chains, Fine blanked
components
Leadership Position- TII Standalone
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Mr. M. M. Murugappan
Chairman
Mr. L. Ramkumar
Managing Director
Mr. N. Srinivasan Mr. S. Sandilya Mr. Pradeep V.
Bhide
Mr. C.K. Sharma Mr. Hemant
Nerurkar
Directors
Ms. Madhu
Dubhashi
Directors and Management
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Revenue and Profit Composition FY 2014-15
4,217 ,
43%
5,481 ,
57%
TII Revenue - 9698 Crs.
245 ,
22%
867 ,
78%
PBIT - 1112 Crs.
Manufacturing Financial Services
Cycles
31%
Eng
37%
Metal
Form
28%
Gears
4%
Mfg Revenue - 4217 Crs
Cycles
22%
Eng
38%
Metal
Form
31%
Gears
5%
Others
-4%
Mfg Profit - 245 Crs
Insurance
32%
Financial
Services
68%
FS Revenue - 5481 Crs
Insurance
23%
Financial
Services
77%
FS Profit - 867 Crs
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Credit Rating
CRISIL AA for long term
CRISIL A1+ for short term
Standalone Balance Sheet
Total Debt / Equity 1.09
Long term Debt / Equity 0.80
Financial Services
Capital adequacy ratio 20.10%
(Stipulated limit 15%)
General Insurance
Solvency ratio 1.61
Financial Strength
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Uninterrupted dividend history for 62 years
Dividend payout policy ~25-30% of profits
TII Share Price and Shareholding Pattern
427.60
0
50100
150
200
250
300
350
400
450
500
31-Mar-09
01-Jul-09
01-Oct-09
01-Jan-1
0
01-Apr-10
01-Jul-10
01-Oct-10
01-Jan-1
1
01-Apr-11
01-Jul-11
01-Oct-11
01-Jan-1
2
01-Apr-12
01-Jul-12
01-Oct-12
01-Jan-1
3
01-Apr-13
01-Jul-13
01-Oct-13
01-Jan-1
4
01-Apr-14
01-Jul-14
01-Oct-14
01-Jan-1
5
01-Apr-15
01-Jul-15
01-Oct-15
01-Jan-1
6
Share Price Movement
48.2% 48.9% 48.8% 48.8% 48.8%
12.8% 13.2% 13.3% 13.6% 14.0%
12.7% 12.2% 12.0% 12.1% 11.7%
26.2% 25.7% 25.8% 25.5% 25.5%
0%
10%
20%
30%
40%
50%60%
70%
80%
90%
100%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Shareholding Pattern
Promoter FII DII Others
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Pioneers in Selling Cycling not just cycles
Cycles / Components
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Industry- FY15
Institutional Sales driving large volumes in
the industry
Growth in Fancy & Premium segmentswhile Standards are in decline in Trade
Business Drivers
Large dealer network across India over
10,000 touch points across India
Expansive Retail Formats in Urban (BSA
Stores), Rural (RHB), Lifestyle (Track& Trail):around 660 stores
Multi Locational Servicing Centers
Continuous New product development
Extensive BTL & ATL activities
Focus on Exports
State of the Art manufacturing facilities for
Alloy and Carbon
Based on volumes of 4 Major players (Source: AICMA Data)
20 Cr.
2014-15
Capital Expenditure
30 Cr.
YTD Dec 15
13%
16%
38%
33%
Market Share - YTD Dec 15
ATLAS AVON HERO TICI
Industry and Business Drivers
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Our flagship brands BSA and HERCULES were recognised for
excellence at the World brand Congress in Singapore.Brand equity
During the year, Super premium and Mass Premium MTB cycles
had registered an overall growth of 95 % and 12% respectively.Super / Mass Premium
Lifestyle Cycles
BSA Go, BSA Hercules Store, Track & Trial LoungePioneer in Retail
Formats
Organised close to 1200 events all over the country participation
of more than 2.2 Lakhs individualsSelling Cycling not Just
Cycles
Large dealer and service network with more than 10,000 touch
points through out the countryMulti Location Servicing
40 new Products developed during the yearPioneer in NewProduct Development
Key Success Factors
http://localhost/var/www/apps/conversion/tmp/scratch_4/New%20T&T%20Store.mov -
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Ladybird Vogue wins CII Design Excellence award
BSA Lady Bird wins the Brand Revitalization Award at
the Global Marketing Excellence Awards by CMO Asia
Achieved 50% Growth Over Last Year in Super
Premium Segment
5 Models Launched (Toonz 12, 14 , TZ110, Rhino Shox
and Lady Bird Bliss)
Obtained additional Order from West Bengal Govt
New Urban adult segment City Bike a hit
Marketing Events
Organized Sales Melas, Service Camps, Mechanic
trainings, College Sales & displays all over India
Around 264 BTL activities conducted YTD Dec 15
Q3 Business Highlights
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figures in Crores
1114
1285 12551179
1307
1056
0
200
400
600
8001000
1200
1400
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Sales
Key Financial Trends
ROCE is calculated based on end figures
105%
84%
57% 62%
34%30%
0%
20%
40%
60%
80%
100%
120%
2010- 11 2011-12 2012-13 2013- 14 2014-15 2015-16 YTD
ROCE %
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Key Financials 2014-15
figures in Crores
Particulars 2014-15 2013-14 % Growth
Volumes Cycles (Lac nos) 40 38 6%
Net Sales (incl. Inter Unit) 1307 1179 11%
EBITDA 65 46 41%
5% 4%
PBIT (Before Exceptional Item) 58 38 50%4% 3%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 59 46
Net Working Capital 111 16
Total Capital Employed 170 62
Sales/NWC 11.7 74.8
ROCE% 34% 62%
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Key Financials
2015-16
figures in Crores
Particulars 2015-16 Q3 2014-15 Q3 % Growth 2015-16 YTD 2014-15 YTD % Growth
Volumes
Cycles (Lac nos) 9 10 -11% 32 31 2%
Net Sales (incl. Inter Unit) 285 317 -10% 1056 1018 4%
EBITDA 11 14 -20% 65 50 29%
4% 4% 6% 5%
PBIT (Before Exceptional Item) 9 12 -25% 59 45 31%3% 4% 6% 4%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 97 55 97 55
Net Working Capital 169 63 169 63
Total Capital Employed 266 119 266 119
Sales/NWC 6.7 20.0 8.3 21.4
ROCE% 13% 40% 30% 50%
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Leader in CDW tubes for the Automotive industry
Engineering
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Industry
Tubes: Significant Player in safety critical
applications
2 wheelers: Leader in Front Forks in India 4 wheelers: Leader in many critical
applications such as side impact
beam, steering columns etc.
CRSS: Niche player in specialized products
Tubular Components: Value added
products
Business Drivers
Manage High Variety demand in Tubes
and strips effectively
High Focus on Value Addition Products New Facility for Non-Auto Segment
Focus on internal efficiencies
87 Cr.
2014-15
Business Mix
Auto
78
Non-
Auto
22
Capital Expenditure
24 Cr.
YTD Dec 15
Business Overview
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Key Success Factors
Market leader in High Quality & Safety criticalCDW Tubes for 2W and 4W applicationsDW Tube
Plants at 4 different locations, well placed inall the regionsulti Location
Large-dia plant gave a significant foray intoNon Auto segment
Gearing for Non-
Auto
Continued focus on special gradesRSS
Tubular components including Steeringcolumn, side impact beam etc.
Value Added
Products
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Q3 Business Highlights
Domestic
Large Dia Volumes ramped up
NPD % to Sales 13% for Tubes and 11% for CRSS
Exports
Ramp up in TFF Export Volume
New program for Drive line Tubing launched
ZF Sachs, Italy placed Trial order for Value added TFF parts
Operations
Cost Competitiveness Program yielded good result
Operational Excellence Initiatives done at all locations and reduced
Customer rejections and In-plant rejections
Recognition received from Customer Wipro for Consistency inImprovements towards Quality during their annual supplier quality meet.
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figures in Crores
1190
1449 1467 15101606
1140
0200
400
600800
1000
1200
14001600
1800
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Sales
Key Financial Trends
ROCE is calculated based on end figures
29% 29%
22% 22%
17%
14%
0%
5%
10%
15%
20%
25%
30%
35%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 YTD
ROCE %
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figures in Crores
Key Financials 2014-15
Particulars 2014-15 2013-14 % Growth
Strips: (Volumes Tonnes) 56628 55529 2%
Domestic 55869 54986 2%Exports 759 544 40%
Tubes: (Volumes Tonnes) 154088 145681 6%
Domestic 143025 135967 5%
Exports 11062 9714 14%
Large Dia Tubes: (Volumes Tonnes) 856
Net Sales (incl. Inter Unit) 1606 1510 6%
EBITDA 150 170 -12%
9% 11%
PBIT (Before Exceptional Item) 103 136 -24%
6% 9%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 465 416 Net Working Capital 154 193
Total Capital Employed 620 609
Sales/NWC 10.4 7.8
ROCE% 17% 22%
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figures in Crores
Key Financials 2015-16
P ar ticulars 2015-16 Q3 20 14-15 Q3 % Growth 2015-16 YTD 2014-15 Y TD % G ro wth
Strips: (Volumes Tonnes) 12804 13671 -6% 39002 44238 -12%
Domestic 12700 13469 -6% 38682 43768 -12%
Exports 104 202 -48% 320 470 -32%
Tubes: (Volumes Tonnes) 37424 37170 1% 114686 117582 -2%
Domestic 34947 34695 1% 107320 109441 -2%
Exports 2477 2474 0% 7367 8141 -10%
Large Dia Tubes: (Volumes Tonnes) 3115 123 9018 123
Net Sales (incl. Inter Unit) 373 389 -4% 1140 1229 -7%
EBITDA 39 31 25% 111 112 -1%
10% 8% 10% 9%PBIT (Before Exceptional Item) 24 19 25% 67 79 -15%
6% 5% 6% 6%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 446 463 446 463
Net Working Capital 188 203 188 203
Total Capital Employed 635 666 635 666
Sales/NWC 7.9 7.7 8.1 8.1
ROCE% 15% 11% 14% 16%
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Metal Formed Products
Precision Value added Components
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Business Overview
Industry
Growth in 2W Scooters by 10%, but decline
in motor cycles by 3% in YTD Dec 15
Passenger car industry grew by 7% YTD Dec
15 compared to same period last year and
Commercial vehicle industry grown by 10%
Slow to moderate growth in Europe & US
Railways: ICF increased the production of
Stainless steel coaches
Business Drivers
Factories located closer to customer
locations
Strong DIAMOND brand
High quality products - Customer endrejections well below the customer targets
Leveraging Acquisitions SEDIS Synergies
Increasing Portfolio for Fine Blanking
Expand applications for Industrial Segment
Business Mix
Capital Expenditure
13 Cr.
YTD Dec 15
7%
20%
73%
Railways
Non-Auto
Auto
26 Cr.
2014-15
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Key Success Factors
Market leader in Drive chain and Cam chain inOEM segmentegment Leader
Strategically located plants near leading OEMsulti Location
Strong brand equity - Diamond and Rombo
brandsrand Equity
PPM less than customer targetuality
Catering to major 2W OEMs and Tier 1 Autocustomers; IC OEMs in Domestic & Exports; Large
dealership network in Auto and IC
Customers
Fine blanking, motor casingsCritical
application
Representative list not exhaustive
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Award received from Lear for Excellence in Part
Development for seat recliner localization development
Market Leadership in Chains across segments
Improved Market Share in both Drive & Cam Chainsvis--vis same period last year
Industrial Chains: Repeat Orders from international
distributors and orders received in new segments
Expanding reach of Aftermarket Portfolio providing an
impressive growth
Initiative: Free Special Service camps for Flood
Affected vehicles in Chennai
New customers addition for Fine Blanked Components
and seeing growth of new product sales in domestic
Leadership position in Doorframe & Channels business
Q3 Business Highlights
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Key Financial Trends
figures in Crores
ROCE is calculated based on end figures
769
860795 799
875
672
0
100
200
300
400
500600
700
800
900
1000
2010-11 2011- 12 2012-13 2013-14 2014- 15 2015- 16 YTD
Sales
24%23%
16%
14%
17% 17%
0%
5%
10%
15%
20%
25%
30%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 YTD
ROCE %
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figures in Crores
Key Financials 2014-15
Particulars 2014-15 2013-14 % Growth
Doorframes (Lakh Sets) 7 8 -15%
Sections for railway wagons (Sets) 1542 987 56%
Coach-side/End wall (Sets) 43 16 169%
Chains:
Domestic (Lac ESS feet) 791 715 11%
Exports (Lac ESS feet) 72 70 3%Net Sales (incl. Inter Unit) 875 799 10%
EBITDA 116 99 18%
13% 12%
PBIT (Before Exceptional Item) 81 67 21%
9% 8%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 315 325
Investments 61 61
Net Working Capital 100 92
Total Capital Employed 477 478
Sales/NWC 8.7 8.7
ROCE% 17% 14%
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figures in Crores
Key Financials 2015-16
Particulars
2015-16
Q3
2014-15
Q3 % Growth
2015-16
YTD
2014-15
YTD % GrowthDoorframes (Lakh Sets) 2 2 3% 5 5 -8%
Sections for railway wagons (Sets) 549 426 29% 831 902 -8%
Coach-Side/End wall 28 12 133% 74 23 222%
Chains:
Domestic (Lac ESS feet) 215 199 8% 608 593 2%
Exports (Lac ESS feet) 20 18 10% 55 53 4%
Net Sales (incl. Inter Unit) 243 226 8% 672 651 3%
EBITDA 33 29 13% 90 84 7%13% 13% 13% 13%
PBIT (Before Exce tional Item) 23 19 18% 61 56 9%
9% 9% 9% 9%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 300 319 300 319
Investments 61 61 61 61
Net Working Capital 105 94 105 94
Total Capital Employed 466 474 466 474Sales/NWC 9.2 9.6 8.5 9.2
ROCE% 19% 16% 17% 16%
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Metal Formed Products
(Contd.)
Leading French Manufacturer of Industrial Chains
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F C 10 Holding company of Sedis
Two plants in France Five global patents
Leader in special and engineeringclass chains
Range of industries catered to
Waste Treatment / Car / escalator
/ textiles / food processing /packaging / cement / sugar /paper / water treatment / lumber/ dams / amusement park / OilPlatforms
Leader in France
Present in around 100 countries Around 200 distributors
Around 400 sale points
Leaf & Roller Chains Conveyor Chains
Agricultural Chains Sprockets & Wheels
France &
Italy, 67
Rest of
World, 3
3
Sales Mix Y 14
Key Products
Business Overview
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Key Financial Trends
figures in K Euro
27882
33256 3326531800 32668
24880
0
5000
10000
15000
20000
25000
30000
35000
2010 2011 2012 2013 2014 2015 YTD
Sales
9%
15%
4%4%
0%
3%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2010 2011 2012 2013 2014 2015 YTD
ROCE %
ROCE is calculated based on end figures
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figures in K Euro
Key Financials - 2014
Particulars 2014 2013
Net Sales 32668 31800EBITDA 1193 1398
4% 4%
PBT -380 229
-1% 1%
PAT -26 348
0% 1%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 6459 5693
Net Working Capital 6465 6437
Goodwill on Consolidation 721 866Total Capital Employed 13646 12996
Sales/NWC 5.1 4.9
ROCE% 0% 4%
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figures in K Euro
Key Financials - 2015
Particulars 2015 - Q3 2014 - Q3 2015 YTD 2014 YTDNet Sales 7294 7715 24880 24785
EBITDA -44 116 1089 895
-1% 2% 4% 4%
PBT -233 -160 -0.27 -221
-3% -2% 0% -1%
PAT -193 -68 90 -44-3% -1% 0% 0%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 6541 6351 6541 6351
Net Working Capital 9337 6819 9337 6819
Goodwill on Consolidation 613 758 613 758
Total Capital Employed 16491 13928 16491 13928
Sales/NWC 3.1 4.5 3.6 4.8
ROCE% -3% -3% 3% 0%
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Gears & Gear Products
Shanthi Gears (SGL) - Strong Brand in Industrial Gears
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Began operations in 1969 at Coimbatore
Leader in custom-made gears & loose gears
~70% of revenues come from customized
products
Fully integrated operations with in-house
R&D team
Design and engineering capabilities
Foundry, Fabrication and forging unit
Comprehensive Heat treatment facilities
Tool room for manufacturing
hobs, cutters
Gears & Pinions
Gear boxes
Geared motors
TII holds 70.12 stake in the company
Key Products
Shareholding Pattern
Gear assemblies
Worm Spares
Service & Repair
Business Overview
70.1% 70.1% 70.1% 70.1% 70.1% 70.1%
1.8% 1.9% 0.1% 0.1% 0.0% 0.0%
3.5% 4.8% 6.9% 7.0% 7.2% 7.4%
24.5% 23.1% 22.9% 22.8% 22.7% 22.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Others
DII
FII
Promoter
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Increased enquiry activities from repeat
customers and railways
Focus continues on high contribution orders
Focus on Capacity Enhancement and Cost
Initiatives in place to renew business from
old customers and business development for
both domestic and exports
New ELITE series of Helical Standard
gearboxes E-Catalogue released, withoptimal design for higher rating capacity and
less weight
Business Highlights
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figures in Crores
162173
144 151 152
122
0
50
100
150
200
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Sales
Key Financial Trends
ROCE is calculated based on end figures
18%
16%
8%10%
5%
8%
0%
2%
4%
6%
8%
10%12%
14%
16%
18%
20%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 YTD
ROCE %
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45
figures in Crores
Key Financials 2014-15
Particulars 2014-15 2013-14 % Growth
Net Sales 152 151 1%
EBITDA 18 42 -56%
12% 28%
PBIT 13 26 -49%
9% 17%
PBT
PAT 9 18 -49%
6% 12%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 85 99 Investments 16 50
Net Working Capital 171 120
Total Capital Employed 272 269
Sales/NWC 0.9 1.3
ROCE% 5% 10%
Key Financials 2015-16
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46
figures in Crores
Particulars2015-16
Q3
2014-15
Q3%Growth
2015-16
YTD
2014-15
YTD% Growth
Net Sales 43 42 1% 122 113 7%
EBITDA 8 6 26% 23 15 57%
19% 15% 19% 13%
PBIT 6 5 23% 17 10 76%
15% 12% 14% 9%
PBT 6 5 23% 17 10 76%
15% 12% 14% 9%
PAT 5 4 37% 13 8 64%
12% 9% 11% 7%
APPLICATION OF FUNDS
Net Fixed Assets (Incl. CWIP) 75 89 75 89
Investments 64 25 64 25
Net Working Capital 144 161 144 161
Total Capital Employed 282 275 282 275
Sales/NWC 1.2 1.1 1.1 0.9
ROCE% 9% 7% 8% 5%
Financial Services
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47
Cholamandalam Investment and Finance Company Ltd.
(CIFCL)Financing your ssetssince 1978
36
Business Overview
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48
Established in 1978, one of Indias
leading NBFCs, focused in the rural and
semi-urban sector with a market
capitalization of INR 102 bn
Presence across vehicle
finance, business finance, home equityloans, stock broking and distribution of
financial products
Operates from 534 branches across 25
states and 90% presence across Tier
II, Tier III and IV towns One of the leading NBFCs in rural / semi
urban areas
Shareholding Pattern
Business Strengths
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49
Founded in1978
, Indias leading NBFC, Focused in Rural and semiurban sector with Market cap of INR 102 bnositioning
Part of the INR 269 bn Murugappa Group founded in 1900, one ofIndias leading business conglomeratexceptional Lineage
Presence across vehicle finance, business finance, home
equity, loans, stock broking and distribution of financial products
Robust Sector
Growth
Operates across 534 branches in 25 states and 90% presence in TierII, Tier III and IV townsiversified Footprint
Total AUM of INR 280 Bn. with healthy ROTA of 3.2%Robust Operating
Profile
Highly experienced management team with unrivalled industryexperienceanagement
CIFCL
Standalone Performance
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50
Key Financial Trends
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51
figures in Crores
5731
8888
1211813114 12808
11439
0
2000
4000
6000
8000
10000
12000
14000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Disbursements
1.4%
2.7%3.0%
2.8%3.0%
3.2%
0.0%
0.5%
1.0%
1.5%2.0%
2.5%
3.0%
3.5%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
ROTA (PBT)
1206
1779
2568
3279
3715
3073
0
500
1000
1500
2000
2500
3000
3500
4000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Total Income
Key Financials
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52
figures in Crores
2014-15 2013-14 % Growth
Disbursement 12808 13114 -2%
Total Income from Operations 3715 3279 13%
29% 25%
PBT 666 554 20%
5% 4%
PAT 444 368 21%
3% 3%
ROTA (PBT) 3% 3%Capital Adequacy Ratio 21% 17%
Particulars
FY
Key Financials
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53
figures in Crores
Particulars 2015-16 Q3 2014-15 Q3 %Growth 2015-16 YTD 2014-15 YTD % Growth
Disbursements 4260 3082 38% 11439 9299 23%
Total Income from Operations 1060 970 9% 3073 2771 11%
PBT 224 171 31% 581 462 26%
21% 18% 19% 17%
PAT 148 113 31% 381 308 24%
ROTA% (PBT) 3.6% 3.0% 3.2% 2.8%
Capital Adequacy Ratio (%) 20.10 20.96 20.10 20.96
Insurance
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54
Business Overview
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55
Among the fastest growing general insurance
companies in India
7th largest private general insurance company in
India
Product basket comprises
accident, engineering, health, liability, marine, mo
tor, property, travel and rural insurance for
individuals, SMEs and corporates
Leading insurer for Japanese / Korean business
interests in India
74%
26%
TII Mitsui Sumitomo
Crore YTD Dec15 FY14-15
GWP
(inc RI Accept) 1706 1896
PAT 92 137
Share Holding
Business Strengths
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56
Strong DistributionPartners
Robust UnderwritingCapability and
operating efficienciesTailor Made Products
Strong CholaSynergies
High RuralPenetration
State of the ArtTechnology
Business Highlights
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57
GWP - growth of 23% over YTD Dec 15
Motor and Fire Products show significant growth over PY
Significant growth in Partnership and Proprietary channels (30% and 35% over
PY respectively)
The performance of Partnership and Government segments achieve targets
above plan
Key Financials
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58
figures in Crores
2014-15 2013-14 % Growth
G W Premium (incl.RI accept) 1896 1872 1%
Net Written Premium 1482 1431 4%
PBT 201 102 98%
PAT 137 70 96%
Total Investment 3165 2328
Combined ratio (CoR%) 104% 101%
Investment Yield % 10.06% 9.30%
Particulars
FY
Key Financials
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59
figures in Crores
Particulars2015-16
Q3
2014-15
Q3
%
Growth
2015-16
YTD
2014-15
YTD
%
Growth
Gross Written Premium
(Incl. RI Accept)614 407 51% 1706 1384 23%
Net Written Premium 539 361 49% 1426 1126 27%
PBT 52 57 -8% 138 157 -12%
PAT 34 39 -12% 92 107 -14%
Total Investment 3724 3098 20% 3724 3098 20%
Combined Ratio (CoR%) -
Excl IMTPIP106% 103% 107% 102%
Investment Yield % 9.03% 9.54% 9.53% 9.64%
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60
Company Financials
Consolidated Performance Trends
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61
figures in Crores
50686456
77528834
9698
6280
0
2000
4000
6000
8000
10000
12000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Total Income
335
536674
789
1003
533
0
200
400
600
800
1000
1200
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
PBT
1.50
3.00 3.00
2.00 2.00
1.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2010-11 2011-12 2012-13 2013-14 2014- 15 2015-16 YTD
Dividend Per Share - In`
10.58
14.4615.47
16.67
22.69
16.74
0.00
5.00
10.00
15.00
20.00
25.00
2010-11 2011-12 2012-13 2013- 14 2014- 15 2015-16 YTD
Earnings Per Share (Basic)- In`
Standalone Performance Trends
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62
9.16 9.69
5.585.04
6.46
3.14
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Earnings Per Share (Basic)- In
figures in Crores
2963
3464 3390 33523646
2770
0
500
1000
1500
2000
2500
3000
3500
4000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
Sales 307 322
255 264 259
186
10%9%
8% 8%
7% 7%
0%
2%
4%
6%
8%
10%
12%
0
50
100
150200
250
300
350
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
PBIT & PBIT %
16% 16%
10% 10%
9% 8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 YTD
ROCE%
ROCE is calculated based on end figures
Standalone Performance Trends
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63
figures in Crores
345367
298 301319
257
0
50
100
150
200250
300
350
400
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
EBITDA
170180
104 94
121
59
0
50
100
150
200
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
YTD
PAT
87
165
217
169
136
70
0
50
100
150
200
250
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 YTD
Capex
Key Financials FY 2014-15
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64
figures in Crores
Particulars Standalone Consolidated
2014-15 2013-14 2014-15 2013-14
Net Sales / Income from Operations 3646 3352 9160 8370Growth % 9% -1% 9% 14%
Total Income from Operations (Net) 3828 3526 9698 8834
Growth % 9% -1% 10% 14%
EBITDA 319 301 1234 1044
% to Sales 9% 9% 13% 12%
PBIT Before Exceptional Item 259 264 1112 914
% to Sales 7% 8% 12% 11%
PBIT After Exceptional Item 293 264 1146 914
% to Sales 8% 8% 13% 11%
Profit Before Tax 155 141 1003 789
% to Sales 4% 4% 11% 9%
Profit After Tax (before Minority Interest) 121 94 684 518
% to Sales 3% 3% 7% 6%
Net Profit 121 94 424 311
% to Sales 3% 3% 5% 4%
Key Financials 2014-15
contd.
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65
figures in Crores
2014-15 2013-14 2014-15 2013-14
EQUITY AND LIABILITIES
Shareholders' Funds
(a) Share Capital 37 37 37 37
(b) Reserves and Surplus 1283 1201 2290 1914
Minority Interest 0 0 1604 1364
Preference shares issued by a subsidiaryoutside the Group 0 0 500 0
Non-Current Liabilities
(a) Long Term Borrowings 781 638 13196 10461
(b) Deferred Tax Liabilities (Net) 57 52 61 58
(c) Other Long Term Liabilities 0 0 1089 1258
(d) Long Term Provisions 0 0 325 306
838 690 14670 12083 Current Liabilities
(a) Short Term Borrowings 340 303 3050 3485
(b) Trade Payables 626 585 876 859
(c) Other Current Liabilities 395 517 7226 7537
(d) Short Term Provisions 44 42 110 80
1405 1446 11261 11961
TOTAL 3563 3375 30362 27359
Particulars
Standalone Consolidated
Key Financials 2014-15
contd.
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66
figures in Crores
2014-15 2013-14 2014-15 2013-14
ASSETS
Non-Current Assets
(a) Fixed Assets 941 891 1206 1167
(b) Goodwill on Consolidation 0 0 354 352
(c) Non-Current Investments 1523 1506 2314 1869
(d) Deferred Tax Assets (Net) 0 0 206 131 (e) Long Term Loans and Advances 53 65 238 225
(f) Receivable under Financing Activity 0 0 15468 13351
(g) Other Non-Current Assets 0 0 610 614
2516 2462 20397 17709
Current Assets
(a) Current Investments 0 0 351 247
(b) Inventories 468 370 614 495 (c) Trade Receivables 478 446 634 614
(d) Cash and Cash Equivalents 26 30 1060 1230
(e) Short Term Loans and Advances 75 67 144 553
(f) Receivable under Financing Activity 0 0 6716 6077
(g) Other Current Assets 0 0 447 434
1047 913 9965 9650
TOTAL 3563 3375 30362 27359
ParticularsStandalone Consolidated
Key Financials 2015-16
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67
2015-16 2014-15 2015-16 2014-15Q3 Q3 Q3 Q3
Net Sales / Income from Operations 868 898 1391 2328
Growth % -3% 9% -40% 10%
Total Income from Operations (Net) 902 942 1509 2469
Growth % -4% 8% -39% 11%
EBITDA 80 72 129 319
% to Sales 9% 8% 9% 14%
PBIT Before Exceptional Item 53 47 108 279
% to Sales 6% 5% 8% 12%
PBIT After Exceptional Item 54 35 109 267
% to Sales 6% 4% 8% 11%
Profit Before Tax 21 -0.9 75 230
% to Sales 2% 0% 5% 10%Profit After Tax (before Minority Interest) 16 -0.4 53 154
% to Sales 2% 0% 4% 7%
Net Profit 16 -0.4 112 87
% to Sales 2% 0% 8% 4%
Standalone Consolidated
Particulars
Key Financials 2015-16
contd
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68
2015-16 2014-15 2015-16 2014-15
YTD YTD YTD YTD
Net Sales / Income from Operations 2770 2790 5905 6915
Growth % -1% 11% -15% 11%
Total Income from Operations (Net) 2878 2924 6280 7330
Growth % -2% 11% -14% 12%
EBITDA 257 237 731 910
% to Sales 9% 8% 12% 13%
PBIT Before Exceptional Item 186 178 637 799
% to Sales 7% 6% 11% 12%
PBIT After Exceptional Item 188 167 638 788
% to Sales 7% 6% 11% 11%
Profit Before Tax 85 62 533 682
% to Sales 3% 2% 9% 10%
Profit After Tax (before Minority Interest) 59 44 356 460
% to Sales 2% 2% 6% 7%Net Profit 59 44 313 277
% to Sales 2% 2% 5% 4%
Standalone Consolidated
Particulars
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Corporate Office:
Tube Investments of India Ltd.
"Dare House", 234 N S C Bose Road,
Chennai- 600 001, India.
+91 44 4217 7770
+91 44 4211 0404